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Article
Publication date: 11 March 2019

Yi Li, Gang Li, Taiwen Feng and Jinpeng Xu

The purpose of this study is to examine the influence of product innovation novelty on the relationship between customer involvement and new product development (NPD) cost

Abstract

Purpose

The purpose of this study is to examine the influence of product innovation novelty on the relationship between customer involvement and new product development (NPD) cost performance.

Design/methodology/approach

The authors use organizational information processing theory and adopt hierarchical regression and slope difference test to assess the relationships between constructs and test the hypotheses.

Findings

The authors evaluate the concept of product innovation novelty from the perspectives of suppliers and customers and infer that these two types of product innovation novelty exert a moderate effect on the relationship between customer involvement and NPD cost performance. First, product innovation novelty for customers strengthens the positive effects of customer involvement on the NPD cost performance. Second, product innovation novelty for suppliers weakens the positive impact of customer involvement on the NPD cost performance. The authors also find that the interaction between product innovation novelty for suppliers and product innovation novelty for customers weakens the positive impact of customer involvement on NPD cost performance.

Originality/value

The findings of this study explain the reasons for the controversies surrounding the impact of customer involvement on cost performance and discuss the role of product innovation novelty in customer involvement in NPD process. The results of this study can be used to establish whether customer involvement improves or weakens NPD cost performance and identify the role of product innovation novelty in NPD. The conclusions derived from this study can provide theoretical knowledge and managerial insights for both academicians and corporate professionals.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 8 November 2022

Ahmad Shah Kakar, Abid Hasan, Kumar Neeraj Jha and Amarjit Singh

The Afghan construction industry faces resource shortages and heavily relies on foreign aid to fund public projects on the path to recovery and reconstruction. While the resource…

Abstract

Purpose

The Afghan construction industry faces resource shortages and heavily relies on foreign aid to fund public projects on the path to recovery and reconstruction. While the resource constraints demand cost-efficient delivery of construction projects, many Afghan public projects experience delays and cost overruns. This study aims to evaluate various attributes and factors influencing cost performance in public construction projects in Afghanistan.

Design/methodology/approach

The literature review and Delphi method identified 30 cost performance attributes relevant to the context of Afghanistan. Next, a questionnaire survey was conducted with construction management professionals working in the public sector in the Afghan construction industry to evaluate these attributes.

Findings

This study found that the lack of resources, poor project management skills and corruption in procurement are the leading causes behind cost overruns in Afghan public projects. This study also identified five latent factors influencing cost performance in public projects in Afghanistan: competency of the project team, socioeconomic and political support, governance and public procurement, planning and risk management and project characteristics.

Research limitations/implications

The exploratory factor analysis did not reveal the relative significance of different cost performance success factors. Moreover, the ranking of cost performance attributes is based on the responses from the public sector construction professionals only.

Practical implications

The construction industry in Afghanistan significantly contributes to the country’s social and economic growth and employment. This study’s findings will help researchers, project sponsors, government departments and industry practitioners interested in improving the cost performance in Afghan public projects.

Originality/value

Given the scarcity of research in war-affected and conflict-sensitive regions, this study fills a research gap on project cost performance by providing insights into the cost performance success factors in public projects in Afghanistan.

Details

Journal of Engineering, Design and Technology , vol. 22 no. 5
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 16 January 2017

Wenxue Lu, YuanYuan Hua and SuJuan Zhang

The purpose of this paper is to explore the influencing factors of cost performance of design-bid-build (DBB) and design-build (DB) projects and comparing the differences of…

1929

Abstract

Purpose

The purpose of this paper is to explore the influencing factors of cost performance of design-bid-build (DBB) and design-build (DB) projects and comparing the differences of influencing factors between these two delivery methods.

Design/methodology/approach

This research identified and refined 14 influencing factors through literature review and academic expert discussions. Questionnaire survey was conducted to collect data about the influencing factors and project cost performance. Then those factors were reduced to four components by factor analysis. Logistic regression analysis is used to investigate the relationship between four principal components and project cost performance.

Findings

The results indicate that the significant influencing factors of project cost performance of DBB projects and DB projects are different. For DBB projects, owner abilities, such as owner team ability, owner experience, and owner finance, are important influencing factors causing cost overruns, while for DB projects cost performance is more sensitive to the contractor abilities, namely, contractor team ability, contractor finance, contractor experience, etc.

Research limitations/implications

The results of the paper are mainly derived by quantitative research method based on the survey of 144 samples, so the results may need validation by qualitative studies. Further research could apply case study or interview to validate the findings in this research. In addition, project type and location are not considered as control variables due to the limited number of samples, future research could be conducted to investigate their relationship with project performance.

Practical implications

The findings of this research not only help practitioners have a better understanding of the factors influencing project cost performance, but also provide some guidelines for practitioners to pay attention to different factors to better control the cost performance within different delivery systems.

Originality/value

Owner ability and contractor ability are found to be of different importance in influencing cost performance of DBB and DB projects. This research extends previous research on cost management by considering different significant factors in influencing project cost performance within DBB and DB projects.

Details

Engineering, Construction and Architectural Management, vol. 24 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 12 July 2018

Thomas Wurzer and Gerald Reiner

The purpose of this paper is to examine whether modular product design is an appropriate practice to improve manufacturers’ flexibility performance and cost performance as well as…

Abstract

Purpose

The purpose of this paper is to examine whether modular product design is an appropriate practice to improve manufacturers’ flexibility performance and cost performance as well as to evaluate whether combined effects of modular product design and delivery performance on flexibility performance and cost performance exist.

Design/methodology/approach

Structural equation modeling with moderating effects is used. Moderating effects allow an evaluation whether combined effects of modular product design and delivery performance exist. For the analysis, data from the international high-performance manufacturing survey are used.

Findings

Analysis results show a positive relationship between modular product design and cost performance, but do not show a significant moderating effect. Thus, no combined effect of modular product design and delivery performance exists in the data at hand.

Research limitations/implications

A potential limitation of this study is the cross-sectional nature of the analysis. In order to test for causal relationships or chronological sequences, longitudinal data are deemed more suitable.

Practical implications

The findings make improvement processes more predictable and help managers to overcome traditional trade-off situations, especially in terms of flexibility performance and cost performance. Manufacturers are still neglecting the implementation of complementary methods for achieving an increase in flexibility while maintaining efficiency.

Originality/value

This paper complements prior research on the effect of improvement practices on operational performance dimensions. It also takes an alternative approach to examine whether a beneficial implementation sequence of improvement practices can be assumed.

Details

International Journal of Operations & Production Management, vol. 38 no. 10
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 11 September 2019

Chukwuemeka Patrick Ogbu and Chinedu Chimdi Adindu

Globally, road projects are notorious for riskiness, which often results in cost overruns. In developing countries, these risks are amplified by economic instabilities and…

Abstract

Purpose

Globally, road projects are notorious for riskiness, which often results in cost overruns. In developing countries, these risks are amplified by economic instabilities and institutional failures. Majority of road projects in these countries are awarded to notedly inept indigenous contractors. Currently, research on the relationship between risks and cost performance of road projects has predominantly focussed on the client’s perspective. Effects of risks on contractors’ cost performance (profit) are inadequately investigated in literature. The purpose of this paper is to determine the relationship between direct risks and cost performance of road projects by indigenous contractors of developing countries from the contractors’ perspective.

Design/methodology/approach

The multivariate structural equation modelling technique was used to analyse purposively obtained data from indigenous contractors that recently completed road projects in Nigeria.

Findings

It was observed that a significant positive relationship exists between the aggregate project risk, i.e. project risk index of cost (PRIC) and cost performance of the projects. Significant positive relationships were also found to exist between identified cost risk centres and PRIC and between risk factors and cost risk centres. The risk centre site environment and location contributes the most to PRIC.

Research limitations/implications

Indigenous contractors of developing countries are to analyse the identified risk factors and centres prior to bidding for road projects and carefully manage them during project execution.

Originality/value

Future studies of risks in road project should aim to obtain project risk indices of costs for the projects.

Details

Journal of Engineering, Design and Technology , vol. 18 no. 2
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 10 June 2021

Teng Teng and Christos Tsinopoulos

The purpose of this study is to explore the link between information systems (IS) capabilities, supplier integration and cost performance in the service context. Specifically, it…

Abstract

Purpose

The purpose of this study is to explore the link between information systems (IS) capabilities, supplier integration and cost performance in the service context. Specifically, it empirically investigates how supplier integration meditates the relationship between three dimensions of IS capabilities and cost performance in service firms.

Design/methodology/approach

A survey of 156 UK service firms was conducted and the data analyzed to determine the role of supplier integration in mediating the effects of IS capabilities on firms' cost performance. The research model was tested using structural equation modeling (SEM), and the neural network model was used to rank the relative influence of significant predictors obtained from SEM.

Findings

The results confirmed that supplier integration fully mediates the effects of information technology (IT) for supply chain activities and flexible IT infrastructure on cost performance and partially mediates the effect of operations manager's IT knowledge on cost performance. The results showed that operations manager's IT knowledge is the strongest predictor of supplier integration.

Originality/value

This study takes a step toward quelling concerns about the business value of IS, contributing to the development and validation of the measurement of IS capabilities in the service operations context. Additionally, it adds to the emerging body of literature linking supplier integration to the operational performance of service firms.

Details

Journal of Enterprise Information Management, vol. 35 no. 3
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 23 November 2022

Zobaida Khanam and Ratan Ghosh

The aim of the study has been performed to investigate the relationship between sustainable supply chain management (SSCM) practices and the cost performance of manufacturing…

Abstract

Purpose

The aim of the study has been performed to investigate the relationship between sustainable supply chain management (SSCM) practices and the cost performance of manufacturing firms in Bangladesh. Moreover, this paper highlights the key environment-friendly approaches and their association with financial performance in Bangladesh.

Design/methodology/approach

The paper empirically assesses sustainable supply chain performance using four major supply chain practices, including sustainable procurement, sustainable production, sustainable distribution and investment recovery, and compares it with the cost performance. Twenty-four variables were identified through different literature and distributed as a structured questionnaire among the managers appointed in different manufacturing firms in Bangladesh. An empirical study was conducted using the Partial Least Square-Structural Equation Modeling (PLS-SEM) technique to examine the hypothesized relationships.

Findings

The results find a positive relationship in two variables of sustainable supply chain practices, including sustainable procurement and investment recovery, while sustainable distribution negatively impacted cost performance. In addition, sustainable production found no effect on cost performance.

Research limitations/implications

The paper emphasizes the financial perspective of a sustainable supply chain without explicit consideration of sustainability's environmental and social dimensions.

Practical implications

This study has implications for the literature on the SSCM approaches of manufacturing firms in the least developed economies. In addition, this study could work as a guideline for some manufacturing industries that prefer a policy or standard to alter their traditional supply chain management system to a sustainable supply chain.

Originality/value

The paper provides a comprehensive framework for evaluating the coordinated effect of SSCM practices on cost performance where variables of four specific activities of SSCM and cost performance are adopted from different studies. Further studies could be initiated, including some other eco-friendly supply chain variables, and the effect could be evaluated from an environmental perspective.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2054-6238

Keywords

Book part
Publication date: 3 May 2012

K.J. Euske, Joseph San Miguel and Chong Wang

This research examines how the cost performance of defense contracts varies among the Air Force, Army, Navy, and the Department of Defense (DoD) and among five major defense…

Abstract

This research examines how the cost performance of defense contracts varies among the Air Force, Army, Navy, and the Department of Defense (DoD) and among five major defense contractors: Boeing, Lockheed Martin, Northrop Grumman, Raytheon, and General Dynamics. Data for these analyses was extracted from the recently established Defense Acquisition Management Information Retrieval (DAMIR) web-based interface for management information on Major Defense Acquisition Programs (MDAP). Note that, in addition to the three military services, MDAP data is also reported for DoD itself.

Data analysis indicates that the Navy ranks last among the military services and DoD in cost performance for MDAP contracts, while the Air Force ranks best. Of the defense contractors, Raytheon ranks last in cost performance and General Dynamics is next to last. Furthermore, the Navy contracts more frequently with Raytheon and General Dynamics than do the other services or DoD. Explanatory factors for poor cost performance may be due to factors such as the Navy's lack of oversight, the quality of the acquisition workforce, the defense contractors’ cost inefficiency, ethical lapses, or weak corporate governance, or combinations of these factors.

In addition, the schedule performance data was also identified. Tests of statistical significance on the schedule performance difference generally yield no results except for one relationship which indicates that the Navy is more likely to have Acquisition Program Baseline (APB) schedule breaches than its counterparts. Finally, cost performance data is examined for statistically significant differences between the two major categories of defense contracts: fixed-price contracts and cost-plus contracts. However, no significant findings were discovered.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78052-754-3

Keywords

Article
Publication date: 27 July 2018

Chukwuemeka Patrick Ogbu and Christian Fidelis Asuquo

Globally, corruption and unethical practices are blamed for financial leakages in construction procurement processes. In literature, there are very few studies that have sought to…

Abstract

Purpose

Globally, corruption and unethical practices are blamed for financial leakages in construction procurement processes. In literature, there are very few studies that have sought to unravel the connectedness between the ethical and cost performances of projects. This paper aims to report findings on the relationship between unethical tendering practices and cost performance of projects in the Nigerian public sector.

Design/methodology/approach

A survey of participants in 119 public projects in Nigeria was conducted. Noting the infrequent use of canonical correlation in construction studies, this study made use of the technique in identifying the significant unethical tendering practices that affect the cost performance of projects.

Findings

Findings include three contractor-related variables: C1: Competitors offer bribes to gain access to confidential tendering information, C2: Competitors overstating their capacity, experience and qualification to secure construction contracts, C3: The same owner(s) use different firms to tender for the same project; and four clients/consultants-related variables: T5: Client divulging more information to preferred bidder, T9: Project requirements overstated or tailored to fit a preferred bidder, T14: Criteria for selecting winner not made public, E1: Chief executive of client organization intervenes in tender evaluation and helps his/her preferred tenderer win the contract affect the cost performance of projects.

Practical implications

Chief executives of procuring entities should no longer act as the chairpersons of their organisations’ tenders boards. This role should be given to reputable members of the core construction professional bodies.

Originality/value

This study links ethical performance of projects to their cost performance using the canonical correlation technique.

Details

International Journal of Ethics and Systems, vol. 34 no. 3
Type: Research Article
ISSN: 0828-8666

Keywords

Article
Publication date: 25 March 2024

Francis Nuako, Frank Ato Ghansah and Thomas Adusei

It is widely accepted that one criterion for determining if a construction project is successful is whether it is completed within the expected budget. There have been…

Abstract

Purpose

It is widely accepted that one criterion for determining if a construction project is successful is whether it is completed within the expected budget. There have been advancements in the management of building projects throughout time but cost overruns remain a key concern in the construction sector internationally, particularly in emerging economies such as Ghana. This study aims to answer the question, “What are the critical success factors (CSFs) that can assist reduce cost overruns in public sector infrastructure projects in the Ghanaian construction industry?”

Design/methodology/approach

This study used a quantitative survey method. The questionnaire was pre-tested by interviewing 15 contractors to ascertain the validity of the content. Factor analysis and multiple regression were adopted to analyze the data.

Findings

This study discovered that the critical factors that can reduce cost overruns in construction projects in Ghana are directly linked to five themes: early contractor involvement in the project planning stage, adequate funding, good project team relations, competent managers/supervisors and project participant incentives/bonuses. This study identifies indestructible, empirically measurable important success criteria for reducing cost overruns in public building projects in Ghana.

Practical implications

When well thought through from the project initiation stage to completion, these critical successes can also be used to deal with damaging economic effects such as allocative inefficiency of scarce resources, further delays, contractual disputes, claims and litigation, project failure and total abandonment.

Originality/value

The uniqueness of this research resides in the fact that it is, to the best of the authors’ knowledge, a first-of-its-kind investigation of the CSFs for reducing cost overruns in public building projects in developing countries.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

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